A securities class action has been filed in the USDC – N.D.CA. against Atlassian Corporation (TEAM) on behalf of all persons or entities who purchased and/or acquired Atlassian ordinary shares and/or common stock between August 5, 2022 through November 3, 2022.
Atlassian develops and sells collaboration and project-management software that operates both on premises and in the cloud. The Company derives a majority of its revenue from its Jira Software and Confluence software products. The Company generates revenue primarily from license subscriptions both from free users who convert to paying customers when they exceed the cap on free licenses, and from existing paying users who expand their existing subscriptions. In 2020, Atlassian began to transition its clients to the cloud, which has accounted for a rapidly growing portion of the Company’s revenues.
The Complaint alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that:
- macroeconomic factors were having a material adverse impact on Atlassian’s business;
- the slowing conversions from free to paid customers the Company was experiencing constituted a negative trend;
- paid user growth also had slowed; and
- as a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On November 3, 2022 Defendants revealed that the Company was reducing its outlook for cloud revenue growth for fiscal year 2023, citing “macro headwinds.” In response, shares of Atlassian declined approximately 29%, from a closing price of $174.17 per share on November 3, 2022, to a closing price of $123.73 per share on November 4, 2022.
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